Marco Rubio on Tax Reform

Our outdated tax code encourages outsources of jobs

Source: American Dreams, by Marco Rubio, p. 11
, Nov 13, 2015

2007: Replace all property taxes by adding 2.5% to sales tax

Everyone liked the sound of lower property taxes. But the details could get awfully convoluted. Marco Rubio had a plan of his own. He wanted to eliminate all property taxes--all property taxes!--on primary residences, then add another 2.5% to the
state's 6% sales tax. To me, that just seemed like a way to shift the tax burden onto poor people, who tend not to own homes and have to spend every nickel they make.

Marco's plan didn't get anywhere. But with patience and persistence, mine slowly did.

Source: The Party's Over, by Charlie Crist, p. 88
, Feb 4, 2014

Replace property taxes with a consumption tax

We would do our best, but our plan to replace property taxes with a consumption tax would never be popular enough to prevail. Without the governor's support, we couldn't
put enough heat on the senate to pass it. I made the pragmatic decision to give up the idea of scrapping the entire property tax system and push for serious reform of the existing system instead.

Source: An American Son, by Marco Rubio, p.153-154
, Jun 19, 2012

OpEd: Proposed consumption tax called "largest tax increase"

Moments before I took the stage on December 2 for a speech to Florida TaxWatch, an organization of fiscal conservatives, Crist's communications director released a statement accusing me of hiding my real record of supporting "the largest tax increase in
Florida history".

The largest tax increase the Crist release criticized was the consumption tax I had proposed to replace property taxes as part of our property tax reform. It was a false charge because the plan would have reduced taxes overall.

Source: An American Son, by Marco Rubio, p.213
, Jun 19, 2012

Eliminate Florida property tax; or cap it at 1.35%

The property tax struck at the core of Rubio's legislative agenda. He wanted to eliminate property taxes on primary residences and replace that revenue with a sales tax. In his "100 Ideas" book he argued that eliminating the property tax would increase
the value of Florida homes and would attract more retirees to the state, who would in turn fill the state's coffers by spending their income and increasing sales for items the state was taxing. Proponents hailed the idea as a way to give relief to
Floridians, whose taxes had soared because of increasing home values; critics said it would benefit the wealthy at the expense of the poor.

Later that year Rubio tried another approach suggesting setting a low cap of 1.35% on property tax rates.
Neither of Rubio's proposals became law, leaving him visibly frustrated. Although Rubio was unsuccessful in selling his property tax proposals, the legislature and Crist did eventually agree to modest tax relief.

We need new taxpayers, not new taxes

Democrats claim their line in the sand is protecting entitlement benefits for the poor and seniors. Republicans, meanwhile, say their line in the sand is "no tax increases." If these same Republicans, who continue to vote for more spending, had been as
resolute [in voting against new spending], the problem would be much easier to solve. Every dollar of deficit spending Republicans backed--along with Democrats--was a deferred tax increase. Our present challenges prove that deficits do matter.

Republicans know it is possible to increase revenue without raising tax rates on anyone. In fact, you can cut tax rates, cut spending, and see an increase in tax revenue. Senator Marco Rubio (R-FL) nailed this point when he said, "We don't need
new taxes. We need new taxpayers." Ultimately, smart tax policy stimulates real growth, which, in turn, creates jobs and revenue. If revenue is considered undesirable, then so is job creation and growth, which is ludicrous.

No one should pay higher taxes in recession, not even top 2%

The tax-cut issue, revolving around whether to extend Bush-era tax cuts scheduled to expire at the end of 2010, demonstrated the different stances of each candidate. Pres. Obama calls for extending the tax cuts to everyone making up to $200,000 a year,
or $250,000 for families, which is 98% of the population. The rates on income above those figures would return to higher levels of the 1990s under the Obama plan.

Rubio insisted all the tax cuts should be extended, saying no one in America should pay
higher taxes at a time of high unemployment and sluggish economic growth. "It's a bad time to raise taxes on anybody," Rubio said. "The only way to improve the economy is by growing the economy and fiscal constraint, and you have to do both."

Crist said that position showed Rubio's inability to break from rigid ideology. While Crist advocated a compromise, Meek backed the Obama position.

Extend Bush tax cuts, even for high earners

There were obvious differences between Meek and Rubio. Meek supported the economic stimulus package and said it kept the country from going into a depression; Rubio said it was a failure. Meek said he would vote for the health care overhaul again and
Rubio said it should be repealed. Meek wants to continue President George W. Bush's tax cuts for all except those who make more than $250,000, Rubio wants them extended for all earners.

"You think government creates jobs," Rubio said to
Meek, cutting him off.

"No, I don't," Meek said.

"You do," Rubio said.

"I think tax cuts for small businesses create jobs and incentives for local communities to move forward," Meek said.

Crist added, "What you just witnessed is the problem
and the reason I'm running as an independent. These two guys are going at each other because one's the Republican right, one's the Democratic left. What's true is there are good things that both parties can present to the future of our country."

Address market uncertainty by making Bush cuts permanent

Q: What steps do you believe the federal government should take in order to create new jobs and facilitate a strong economic recovery?

A: I believe we need to directly address the uncertainty in the market caused by policies coming from Washington.
We need to permanently extend the 2001 and 2003 tax cuts, repeal Obamacare, halt regulations that hurt job creation and promote fair and free trade.

2000: $4 surcharge to cruise tickets to fund Marlins stadium

Before the March 2000 session, Rubio was hardly the scorching conservative who would later woo Tea Partiers nationwide. He said he'd focus on supporting early education and community policing.
And he wasn't particularly passionate about cutting spending. In his first three years, he supported adding a $4 surcharge to cruise tickets to fund a Marlins stadium and a $1.2 million earmark to build new bike paths in his district.

Proposed to replace property taxes with state sales tax

CRIST: My opponent proposed the largest tax increase in the history of my state, about a $9 billion increase in taxes. He said it would be some kind of a swap & that justifies it. But it would have hit sales tax, which would have been the most regressive
tax that you could imagine--in other words, people who can least afford it have to pay the same as people who can afford a lot more.

RUBIO: It would have eliminated property taxes for all sorts of people. You said you ran as a Jeb Bush Republican. Jeb
Bush supported that plan. And later on, you supported a similar plan.

Q: It would have eliminated the property tax and substituted a state tax?

RUBIO: With a revenue-neutral sales tax.

CRIST: Not revenue-neutral. It would have increased sales tax.

RUBIO: 30% of our sales tax are paid for by non-Floridians. It would have been a massive tax cut for Floridians on their property taxes.

Pledged to never raise taxes as state rep

Q: [to Crist]: When you were running for governor in 2006, you pledged you would not raise taxes. Last year you signed a $2.2 billion increase in new taxes and fees. Didn't you break your promise?

CRIST: No, I don't think I did, [because the increases
were all in fees].

RUBIO: I took a pledge when I became a state representative to never raise taxes. I never broke that pledge. And that's why the leader of that organization and basically every fiscally conservative group in the country has supported
my candidacy.

CRIST: Actually, the speaker has broken that pledge.

RUBIO: The governor has broken his pledge. He broke it last year.

CRIST: No, that's not true. He voted for tax increases when he was on the West Miami City Commission, and he said
on his Web site that he has never voted for a new tax. That's just not the truth, and he ought to be truthful to the people of Florida before he asks for their vote.

Capital gains tax is double taxation

Jobs aren't created by politicians. They're created by people who are willing to use their money to start a business or expand an existing one and what they're looking for are clear signs from Washington that
Washington is serious about pro-growth policies, about controlling spending, and about ending the practice of monetizing our budget shortfalls so here are a few measures that I think will help change or send that signal.
Let's reform the tax code and reduce tax rates across the board. Let's eliminate double taxation by abolishing the taxes on capital gains, on dividends, on interest and while we're at it let's eliminate the one on death too.
Let's significantly lower the corporate tax rate so once again it's competitive with the rest of the world. And finally let's undertake serious measures that show that we are serious about getting control of our federal national debt.

Simplify our tax code; reduce the tax burden

I have never voted for a tax increase. While I generally support tax cuts,
I believe meaningful tax reform that simplifies our tax code, makes it easier to understand and is more fair to the taxpayer should be our ultimate goal.

The Christian Coalition voter guide [is] one of the most powerful tools Christians have ever had to impact our society during elections. This simple tool has helped educate tens of millions of citizens across this nation as to where candidates for public office stand on key faith and family issues.

Supports the Taxpayer Protection Pledge.

[The ATR, Americans for Tax Reform, run by conservative lobbyist Grover Norquist, ask legislators to sign the Taxpayer Protection Pledge in each election cycle. Their self-description:]

In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. Since its rollout in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts. Today the Taxpayer Protection Pledge is offered to every candidate for state office and to all incumbents. More than 1,100 state officeholders, from state representative to governor, have signed the Pledge.

The Taxpayer Protection Pledge: "I pledge to the taxpayers of my district and to the American people that I will: ONE, oppose any and all efforts to increase the marginal income tax rate for individuals and business; and TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar
for dollar by further reducing tax rates."

Opponents' Opinion (from wikipedia.com):In Nov. 2011, Sen. Harry Reid (D-NV) claimed that Congressional Republicans "are being led like puppets by Grover Norquist. They're giving speeches that we should compromise on our deficit, but never do they compromise on Grover Norquist. He is their leader." Since Norquist's pledge binds signatories to opposing deficit reduction agreements that include any element of increased tax revenue, some Republican deficit hawks now retired from office have stated that Norquist has become an obstacle to deficit reduction. Former Republican Senator Alan Simpson, co-chairman of the National Commission on Fiscal Responsibility and Reform, has been particularly critical, describing Norquist's position as "no taxes, under any situation, even if your country goes to hell."